Request for Proposal (RFP) RFP #1002-14-15 For Banking Services January 2015
TABLE OF CONTENTS Introduction Page 3 Background Page 4 Proposal Procedures Page 5 Required Banking Services Page 6 Other Requirements & Instructions Page 8 Format & Content of Proposal Page 9 Evaluation Criteria for Selection Page 10 Attachment I-Minimum Requirements Page 11 Attachment II-Proposed Fee Schedule Page 11 Attachment III Signed Agreement Page 13 Page 2
INTRODUCTION The City of Prineville, Oregon is seeking written proposals from banking or financial institutions for banking services. The purpose of this process is to obtain high quality requisite depository, banking services at a competitive price. Responses must address all of the items listed in this request for proposal and be submitted in a sealed envelope marked Banking Services Proposal on the outside of the envelope. Submissions shall become the property of the City of Prineville without obligation. The City will not pay for any costs incurred by proposers in the preparation, submission and presentation of their proposals. Please submit one original and four copies of the proposal as follows: Lizbeth A Schuette Finance Director City of Prineville 387 NE Third St. Prineville, Oregon 97754 Proposals must submitted no later than 9:00 a.m. on February 2, 2015. Incomplete proposals will not be considered. Any exceptions to the specifications of this request for proposal must be clearly stated in writing in the proposal. The City reserves the right to reject any and all proposals, to waive irregularities, to retain all proposals submitted and use any idea in a proposal regardless of whether that proposal is selected, and to cancel this proposal if doing so would be in the public interest. The Request for Proposals can be downloaded from the City of Prineville Website at http://www.cityofprineville.com/doc/index.php?lib=8. The City of Prineville reserves the right to make changes to the RFP by written addenda, which shall be issued to all prospective Proposers known to the City of Prineville to have received the proposal document. Any questions regarding the RFP must be submitted in writing by January 23, 2015 10:00 A.M. Please email all questions to the City Finance Director, Lizbeth at lschuette@cityofprineville.com Responses will be issued by written addendum and shall be issued to all prospective Proposers no later than January 26, 2015, by 10:00 A.M. All addenda will be posted on the City of Prineville website at http://www.cityofprineville.com/doc/index.php?lib=8. Oral interpretations or statements cannot modify the provisions of this RFP. If inquiries or comments by proposers raise issues that require clarification by the City, or the City decides to revise any part of this RFP an addenda will be posted on the City of Prineville website at http://www.cityofprineville.com/doc/index.php?lib=8. Receipt of an addendum must be acknowledged by signing and returning it with the proposal. Page 3
BACKGROUND The City of Prineville currently maintains a commercial banking relationship with a depositary institution. The City s contract for banking services has expired and it is appropriate to conduct a complete review of the services offered by qualifying institutions at this time. The City seeks a banking institution that demonstrates a strong commitment to customer service through its banking services and products. In addition the City seeks to improve its efficiency through customized systems and procedures. The City will look to its bank for creativity and flexibility in meeting the City s needs. The successful proposal (or proposer) will be awarded a contract for three (3) years with the option to renew subject to City and Bank s mutual agreement. The City is seeking a complete range of services and products as described in the Required Banking Services section. The City is especially interested in various technical solutions that could improve the City s banking, cash management, and customer service capabilities such as account reconciliation, direct deposit and automated/online banking. The City currently maintains two checking accounts for operations, two payroll checking accounts, a money market account and deposits with the Local Government Investment Pool. All daily deposits of cash and checks are prepared and deposited by the Finance Department. The City of Prineville maintains 19 active funds including the General Fund, 4 Special Revenue Funds, 2 Debt Service Funds, 4 Capital Projects Funds, 5 Enterprise Funds, and 3 Internal Services Funds. The accounting system of the City comprises of a general ledger, utility accounts receivables, and other books of account under the supervision of the Finance Director. Copies of the City s current budget and/or latest audited financial statements may be obtained through the City s website or by contacting Lizbeth A Schuette, Finance Director, 387 NE Third Street, Prineville, Oregon 97754, phone (541) 447-5627. Current Account Information The following table illustrates relevant data on the city operating and city payroll accounts: Account Avg. Daily Balance Avg. No. of Checks/Month Avg. Monthly Disbursements Operations $650,000 250-450 $600,000 - $1,900,000 Payroll $10,000 40-100 $100,000 - $250,000 Page 4
PROPOSAL PROCEDURES The City has made every effort to include enough information within this RFP for a banking or financial institution to prepare a responsive proposal. The City encourages proposers to submit a proposal that is comprehensive, clear and concise. The schedule of the proposal process is as follows: Release of RFP January 6, 2015 RFP Question Deadline January 23, 2015, by 10:00am Closing Date February 2, 2015, 9:00am Proposal Review March 3, 2015 Interview finalists (if necessary) March 13, 2015 Notice of Intent to Award March 27, 2015 City Council Approval of Contract April 14, 2015 Implementation and Conversion July 1, 2015 These dates are estimates and subject to change by the City. Proposers are advised that if any information submitted is intended to remain confidential, it must be clearly identified as such. The City will endeavor not to disclose such information to the extent allowed under Oregon law. Any questions regarding the RFP must be submitted in writing to the attention of the City Finance Director, Lizbeth Schuette. Release of the RFP The RFP will be available on January 6, 2015 on the City s website at http://www.cityofprineville.com/doc/index.php?lib=8. Proposal Review After the closing date, City staff will begin evaluation of all proposals submitted. Selected proposers may be requested to conduct an oral presentation of their proposals. These proposers will be notified to arrange an oral review meeting. Award Notification After a final decision is made, the successful financial institution will be invited to finalize a contract with the City of Prineville. Remaining vendors will be notified in writing of their selection status. Implementation and Conversion After Council Approval of Contract The awarded financial institution will be expected to present a conversion/implementation plan that agrees to the timeframe above and provides adequate support to City staff to ensure a smooth transition. Page 5
REQUIRED BANKING SERVICES 1. Account Types: Accounts Payable Interest bearing, maintained for deposits and payments relating to normal business operations. Payroll - Interest bearing, maintained for deposits and payments relating to payroll. Money Market account to maximize interest earnings on funds above its immediate needs and which is accessible on a daily basis. 2. City requires that a night depository be available after 5:00 p.m. 3. The bank will provide standard banking supplies and services; including but not limited to deposit slips, depository keys, secured deposit bags and endorsement stamps to the City at no additional cost. The City will provide all checks utilized. 4. Accurate and timely detailed monthly account analysis, account reconciliation detail, including float and miscellaneous detail. 5. Account reconciliation services. Account analysis statement must show itemized charges. Bank statements to use cut-off date as the last day of the month. 6. Automated account reconciliation services (daily download through the internet of cleared checks and account transactions) on the Accounts Payable and Payroll checks. 7. Must provide direct deposit services. 8. Merchant bankcard services. (To include Visa, Master Card, Discover, & American Express) Must issue separate monthly statement indicating deposits & any fees or discount charges. 9. Electronic transfer of merchant bank card deposits. 10. Corporate bankcard services including departmental VISA/MasterCard cards. 11. Automatic redeposit of returned checks a second time, if the instruments are initially dishonored due to NSF notations. NSF fees are to be assessed against the monthly analysis. 12. All stop payments shall be charged against the account analysis. 13. Electronic data transmission system available via on-line banking system on the next day by 8:00 a.m. Pacific Standard Time, including previous day balance, collected balances, earnings allowance and transaction information for each designated account. Page 6
14. The proposer must maintain wire transfer facilities through the Federal Reserve Bank System. In addition, the proposer must facilitate the Oregon Automated Clearing House transactions. The bank shall present any issues of which the City should be aware or any additional options not presented in this proposal. 15. Must have a disaster recovery and backup plan in place to protect the City and the bank in the event of disaster to either entity or both. 16. If the City develops a need for additional accounts or services during the term of the depository agreement, those new accounts or services shall be provided with the same conditions as apply to existing accounts. 17. Lockbox services. 18. Payroll services. 19. On-line banking services, providing for direct payment of utility bills. 20. Same day credit of deposits. Please indicate the latest time of day to receive deposit for same day credit. 21. Capacity for a $1 million line of credit for emergency short-term loans. 22. Money transfer services between operating and payroll accounts, preferably via internet. 23. Training services. Bank must provide initial setup and on-site training to city personnel for the operation and use of the bank s services and automated system s for all areas of services. Manuals & on-going support shall be provided. 24. Overdraft protection: The City of Prineville requires overdraft protection in the event that its checking account becomes overdrawn. Because the City is tax-exempt, it is presumed that the rate charged will be on a tax-exempt basis. If charged, the City requires a maximum daily overcharge fee be established for checks presented in the event of an overdraft. 25. Other recommended services for consideration: Please list any other bank services the City should consider. Include related charges for the service and a detailed explanation of the service being offered. Page 7
OTHER REQUIREMENTS & INSTRUCTIONS 1. Each proposer shall indicate the primary resource personnel and location of such personnel who will service the City within the scope of this agreement. One primary bank officer should be designated for communication purposes. In addition, the bank shall identify liaison staff members as well, on the basis of primary contact people and backup contact people. 2. Explain financial strength and condition of the company; indicate the level of requirement collateralization by Office of State Treasury well capitalized, adequately capitalized or undercapitalized; any Federal Depository Insurance Corporation (FDIC) mandated requirements and if applicable, status of FDIC requirements and latest quarterly earnings summary. 3. Include a sample of any service agreements your bank requires. 4. Include a schedule of all bank service fees. 5. Describe what index the earnings rate on the general account would be pegged to, listing the last six months applicable rates. 6. Though the City will normally attempt to keep the collected balance as low as possible, the earnings credit for the collected balance will still serve to offset charges. What carry-forward do you allow for the earnings credits and what is the related settlement interval, monthly, quarterly, annually? The bank must specify the precise methodology for calculating the earnings credit as well as any applicable reserve requirements. Explain any charges that would not be offset by compensating balances. 7. Include a sample of the online balance report showing ledger balance, collected balance, and float balance, summary and detail, as well as user instructions. 8. Include a sample of the monthly detailed statement. 9. Include a sample of the monthly account analysis. 10. Include a list containing the addresses of each branch located within City of Prineville. 11. Describe briefly your proposed implementation plan and timetable for conversion, including any required training. The plan should provide the City with sufficient detail to allow for a reasonable estimate of the complexity and costs. Page 8
FORMAT AND CONTENT OF PROPOSAL In order for City staff to adequately compare and evaluate proposals objectively, all proposals MUST be submitted in accordance with the following format. The proposal should be prepared simply, yet comprehensive, clear and concise. Each proposal should be placed in a book format and separated by section and tabbed in conjunction with the proposal specifications. Title Page/Cover The letter should designate the proposing bank, the primary address of the bank office where the government banking relationship will reside, the address of the local branch, if different, a contact for inquiries and be signed by the authorized bank officer. It should state date proposal was submitted. No pricing information should be included in the cover letter. Tab 1 Transmittal Letter Letter should explain why the proposer believes it should be selected and briefly address its commitment, if selected, to provide services to the City of Prineville. Tab 2 Required Banking Services Meet all requirements; if not list exception items and with detailed explanation. Tab 3 Other Requirements & Instructions Answer and provide information to the listed items. Tab 4 - Attachment I Minimum Requirements Completed and attach form. Tab 5 Attachment II Proposed Fee Schedule Complete and attach schedule. Tab 5 Attachment III - Signed Agreement Complete and attach form. Exceptions to Specifications Any exceptions to the specifications of this RFP must be clearly identified in writing in the proposal, and referenced in the cover sheet. Page 9
EVALUATION CRITERIA FOR SELECTION It is the intent of City of Prineville to select the bank most qualified to provide the best value to the City. Best value is based not only on cost, but also includes the ability to provide quality desired services and support. Each proposal will be evaluated on eight (8) criteria. The contract will be awarded to the institution with the highest net total. The eight criteria will be weighted according to the following allocations: 1. Costs and fees charged for all services. (10pts) 2. The bank s ability to provide the needed services. (20pts) 3. Financial strength of the institution. Ability and willingness to loan dollars to city/needed services. (20pts) 4. Return on investment. (10pts) 5. Quality and convenience of services. (20pts) 6. The bank s record of customer service as reflected by reference checks with other government entities, and the City s experience with the bank. (10pts) 7. Any additional services offered as described in the proposal. (5pts) 8. Participation in the community. (5pts) Total (100 points max.) Page 10
ATTACHMENT I MINIMUM REQUIREMENTS Banking institutions submitting proposals must meet or exceed the following minimum criteria: (Indicate this by checking YES or NO next to each item) 1. Must be a qualified public depository as prescribed by Oregon State Law (ORS 295). Institutions must meet or exceed the requirements outlined therein. 2. Must be a member of the Oregon Automated Clearing House Association. 3. Must have access to the Federal Wire System. 4. Must be insured by the Federal Deposit Insurance Corporation. 5. Must be able to facilitate transfers to and from the Local Government Investment Pool managed by the Oregon State Treasurer s Office. 6. Must be a full service institution capable of providing, at a minimum, the services described in the Required Banking Services section. 7. Must work with the City on implementing technological advancements that would be cost effective for the City. Proposals regarding these kinds of services should be described separately as optional services. ATTACHMENT II - PROPOSED FEE SCHEDULE The Proposer shall provide a schedule of fees using the form on Page 12. Please use the following format for presentation of bank service fees. Separate fee listings will not be accepted unless this sheet is completed. Additional comments must be clearly referenced from those attachments to a specific item in this RFP. Page 11
Monthly Maintenance: Main Checking Account Monthly Maintenance: Payroll Checking Account Account Analysis Fees FDIC Insurance Charge Merchant Bank Credit Services Individual Transaction Fees Per Check ACH Credits ACH Debits ACH Transmission Fee Deposits: Local Clearing House Deposits: General Clearing House Deposits: Currency Stop Payment Processing Other Investment Services, Including Trading Fees Lockbox Services Returned Item Charge Currency Deposited or Purchased New Customer Set-up Fee Overdraft Protection/Maximum daily overdraft fee Data Transmission Data Connection Fees Sweep Fees (per account) Wire Transfer Fees (incoming) Wire Transfer Fees (outgoing) Rate of Interest Earned (if applicable) Rate of Interest Charged (if applicable) Other: Page 12
Attachment III SIGNED AGREEMENT I, the undersigned, an authorized representative of whose address is:, have read and thoroughly understand the specifications, instructions and all other conditions of the request for proposal issued by City of Prineville for banking and investment services. Acting on my behalf of my bank, which is listed above, I do attest that the services offered by us meet the specifications of City of Prineville in every respect, (check one) without exceptions or with exceptions (attached). We therefore offer and make this proposal to furnish to the City of Prineville the banking services detailed in our proposal at the prices indicated. Bank Name: Address of Home Office: Date: Signature: Printed Name: Title: Page 13